Scottish and Newcastle has confirmed it will close its brewery in Berkshire by 2010.

The move will lead to around £13million in annual cost savings but puts more than 360 jobs at risk.

The decision was shared with the Carlsberg and Heineken consortium which is buying S&N as part of due diligence. Stephen Glancey, S&N group operations director, said: "It is well documented that there is over capacity in the UK brewing sector, and these proposals have been put in place to address this issue.

"The nature of the Reading site, the amount of investment required to make it competitive and its cost compared to other UK facilities means that there is a strong case for closure. We will, of course, do all we can to mitigate the effects of the closure on the people affected."

Unions and real ale campaigners were disappointed with the decision and negotiations with employees are ongoing.